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PETROSONIC - INCREASING REVENUE FROM EXISTING PRODUCTION
                                       upgrades heavy crude
       Conventional catalytic crackers                   Sonic technology
       Works at ±500 C                                   Sound/magnetic waves at (±150 C)
       Difficult process control                         = lower operating cost
       High maintenance (carbonization)                  Faster, more uniform processing
       Large scale economics                             No moving parts – low maintenance
       High cost equipment and catalysts                 Small modular footprint for field deployment
                                                         Lower capex (~$3m per module)
                                                                          Petrosonic




Petrosonic principle of operation : Infrasonic cavitation removes asphaltenes & metals
  Heavy Oil       InfraSonic               Electromagnetic waves create low pressure bubbles the heavy crude
   Storage        Cavitation               Localized extreme conditions crack hydrocarbon and branch chains
                    Solvent                Asphaltenes drop out of solution capturing metals and sulphur
  Asphaltene          De-        Solvent   Oxidization unit completes the process
      s           asphalting     Storage
                     Unit
                                           Processing 1000-10,000BBL’s.Day
                     Bio-
                   Chemical                ±40% crude lightening
                  Oxidation                Upgrades oil from 8-12 API to 24-30 API
                     Unit                  Increases value ($/bbl) of crude by 20-50%
  Upgraded          Solvent                15-20% bitumen volume to asphalt market
  Oil Storage      Recovery
PETROSONIC - INCREASING REVENUE FROM EXISTING PRODUCTION
                                           upgrades heavy crude
Petrosonic plant economics (typical international)
                      Current Boscan   Upgraded                                        Current Blended     Upgraded to
                                        Boscan                                          Lloydminster         28 API
WTI Oil Price ($/bbl)          $75.00        $75.00         Hardisty Light                        $70.00           $70.00
Differential                     40%             $4         Differential                            25%            $11.00
Boscan Oil Price               $45.00        $71.00         Hardisty 21 API Oil                   $52.50
Liquid Yield                    100%           90%          Medium Sour Crude                                      $59.00
                                                            Liquid Yield                          100%               90%
             Revenues          $45.00        $63.90
                                                                         Revenues                $52.50            $53.10
% Diluent/Solvent                               3%
                                                            % Diluent/Solvent                      30%                5%
Price                                        $80.50
                                                            Price                                $85.75            $80.50
 Diluent/Solvent Cost                         $2.42                             Cost             $25.73             $4.03
       Upgrading Cost                         $5.00              Upgrading Charge                                   $5.00
% of Asphalt                                   13%          % of Asphalt                                             10%
Price of Asphalt                             $25.00         Price of Asphalt                                       $30.00
     Asphalt Revenue                          $3.25               Asphalt Revenue                                   $3.00
              Netback          $45.00        $59.74                        Netback               $38.25            $47.08
Net Uplift                                   $14.74         Net Uplift                                              $8.83
Upgraded oil quality from Athabasca Canadian tar sands Petrosonic heavy oil test results

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Petrosonic presentation

  • 1. PETROSONIC - INCREASING REVENUE FROM EXISTING PRODUCTION upgrades heavy crude Conventional catalytic crackers Sonic technology Works at ±500 C Sound/magnetic waves at (±150 C) Difficult process control = lower operating cost High maintenance (carbonization) Faster, more uniform processing Large scale economics No moving parts – low maintenance High cost equipment and catalysts Small modular footprint for field deployment Lower capex (~$3m per module) Petrosonic Petrosonic principle of operation : Infrasonic cavitation removes asphaltenes & metals Heavy Oil InfraSonic Electromagnetic waves create low pressure bubbles the heavy crude Storage Cavitation Localized extreme conditions crack hydrocarbon and branch chains Solvent Asphaltenes drop out of solution capturing metals and sulphur Asphaltene De- Solvent Oxidization unit completes the process s asphalting Storage Unit Processing 1000-10,000BBL’s.Day Bio- Chemical ±40% crude lightening Oxidation Upgrades oil from 8-12 API to 24-30 API Unit Increases value ($/bbl) of crude by 20-50% Upgraded Solvent 15-20% bitumen volume to asphalt market Oil Storage Recovery
  • 2. PETROSONIC - INCREASING REVENUE FROM EXISTING PRODUCTION upgrades heavy crude Petrosonic plant economics (typical international) Current Boscan Upgraded Current Blended Upgraded to Boscan Lloydminster 28 API WTI Oil Price ($/bbl) $75.00 $75.00 Hardisty Light $70.00 $70.00 Differential 40% $4 Differential 25% $11.00 Boscan Oil Price $45.00 $71.00 Hardisty 21 API Oil $52.50 Liquid Yield 100% 90% Medium Sour Crude $59.00 Liquid Yield 100% 90% Revenues $45.00 $63.90 Revenues $52.50 $53.10 % Diluent/Solvent 3% % Diluent/Solvent 30% 5% Price $80.50 Price $85.75 $80.50 Diluent/Solvent Cost $2.42 Cost $25.73 $4.03 Upgrading Cost $5.00 Upgrading Charge $5.00 % of Asphalt 13% % of Asphalt 10% Price of Asphalt $25.00 Price of Asphalt $30.00 Asphalt Revenue $3.25 Asphalt Revenue $3.00 Netback $45.00 $59.74 Netback $38.25 $47.08 Net Uplift $14.74 Net Uplift $8.83 Upgraded oil quality from Athabasca Canadian tar sands Petrosonic heavy oil test results